Refer to the information presented in PA-42 and the supplemental information below:

Sales ...................................................................... ?$2,000,000Cost of goods sold ............................................... ? 1,200,000Sales and administrative expenses ................... ? ? ?30,000

Data from PA-42

• Ordinary shares were redeemed during the year at their book value.
• The face value of the bonds is $400,000; they pay a coupon rate of 7% per annum. The effective interest rate of interest is 6% per annum.
• Net income was $100,000.
• There was an ordinary stock dividend valued at $20,000 and cash dividends were also paid.
• Interest expense for the year was $100,000. Income tax expense was $50,000.
• Robinson arranged for a $500,000 bank loan to finance the purchase of equipment.
• Robinson sold equipment with a net book value of $150,000 (original cost $200,000) for $180,000 cash.
• Robinson acquired equipment costing $250,000 under a finance lease.
• Robinson has adopted a policy of reporting cash flows arising from the payment of interest and dividends as operating activities.
• The at fair value through profit or loss investments are cash equivalents.

Required:Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.

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Robinson Inc. Balance Sheets As at December 31, 2013 and 2014 2014 2013 Assets Cash $ 600,000 $ 400,000 Accounts receivable 1,100,000 1,300,000 Inventory 400,000 600,000 Investments-at fair value through profit or loss 200,000 Investments-financial asset at amortized cost 100,000 Property, plant, and equipment 4,200,000 3,400,000 Accumulated depreciation (2,000,000) (1,500,000) Total $ 4,600,000 $ 4,200,000 Liabilities and shareholders' equity Accounts payable $ 100,000 $ 150,000 Bank loans 2,700,000 2,400,000 Bonds payable 413,860 416,849 Preferred shares 300,000 Ordinary shares 300,000 400,000 Retained earnings 786,140 $ 4,600,000 833,151 Total $ 4,200,000